| Material Impacts |
Prices for most raw materials used to make precision parts have double digit increases for the year ending December 31, 2009.  Surcharges, price increases, and short supplies of even common items characterize today's market. Until larger inventories of scrap build up from increases in production, the industry and its supply chain face a paradox of no scrap from which to make steel, therefore no steel to make parts, therefore, no scrap to make steel... Copper and brass has doubled over the year. Aluminum is up over 40%. We anticipate spikes in surcharges, allocation, and long lead times throughout the first quarter of 2010.
In addition,12L14 steel with the tellurium additive which has been readily available until most recently is no longer available at all. This tellurium additive improved machinability on applicable parts tremendously allowing these parts to be made quickly & efficiently. Job Shops all around have had to adjust into using straight 12L14 (no tellurium added) in place of and find other innovative methods like supplemental tooling styles to provide the increased efficiency as opposed to previously made and now unavailable tellurium enhanced 12L14 steel. In some extreme cases the loss of tellurium enhanced 12L14 steel has hurt the overall efficiency of particular parts forcing us to increase cycle time to avoid burning up tools. |
| Success! |
 Here's what our customers are saying!
"As a fairly new purchaser, I have found the Avanti team very friendly , easy to work with and very customer oriented. They are willing to take the extra steps to meet our requirements." "I've partnered with Avanti Engineering for many years in both distributor / manufacturer partner roles. Avanti has been a key partner on many precision machined parts and is a quality organization with competitive pricing. Unlike many, they have the ability to produce unique & complex per-print items with predictable, on-time deliveries. " Read More |
| Avanti Engineering's Updatesl |
Increasing our sales department
Avanti Engineering, Inc. has expanded our sales force to now include two new sales representatives representing us directly and going into new territories. We are not sitting back and waiting for the sales to find us but instead going after new business aggressively. Avanti Engineering, Inc. wants to welcome Kim Niccolai and Ed Travis to our team.
Business status
Avanti has seen an influx in order volume and as such has increased our production schedule back to 5 days per week. Various departments are moving to a 50 hour work week and the office personnel will be going back to 5 days Monday thru Friday. This will help us maintain and improve our delivery performance and our overall communication on a day to day basis. Your representative's will now be available 5 days instead of 4 days. We hope this trend continues throughout the rest of 2010 and further but as always this is subject to change as economic conditions dictate.
As always thank you for your business and your interest in Avanti Engineering, Inc. and for taking the time to stay in touch with us by reading this newsletter. If you have any suggestions for improving our newsletter by including additional specific information please email me off line. Thanks again! Best Regards,
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